New York's Cooperative and Condominium Community

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LEGAL/FINANCIAL

HOW LEGAL/FINANCIAL PROBLEMS ARE SOLVED BY NYC CO-OPS AND CONDOS

New York State Tax Break Finally Coming to Co-op and Condo Owners

Frank Lovece in Legal/Financial on April 29, 2014

New York State, New York City

April 29, 2014

The new "Circuit Breaker" tax-relief program — a nickname for a needs-based tax break or rebate, used in over 30 states and also called an "individual's tax cap" — makes qualifying residents eligible to receive a refundable tax credit against their personal state income tax. The final amount per person will depend on individual incomes, property-tax rates and other factors.

"The tax relief program will provide a much needed break to both renters and small homeowners at a time when many residents are facing constant increases in their rent and property taxes. Although the credit amount may not be significant, it is a good first step in alleviating some of the financial burden constantly faced by New York City residents," Avella said in a statement.

"A tax credit will be welcomed by the many middle-class families living in New York City co-ops and condos. The co-op and condo community appreciates Sen. Avella's continued advocacy on its behalf," said Warren Schreiber, co-op board president of Bay Terrace Cooperative Section I, in Queens.

In the State Assembly, Speaker Sheldon Silver also advocated for a circuit-breaker credit.

Bob Freidrich, board president of the 110-building, 10,000-resident Glen Oaks Village co-op in Queens, said, "Small homeowners, co-op and condo owners will be able to get an income tax break that they've never had before. This is a huge step in the right direction."

An earlier version of a circuit-breaker tax credit, Bill S3266-2013 was introduced last year by State Senator Liz Krueger

Details are not yet posted at New York State Dept. of Taxation and Finance website, but presumably will be.

 

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